The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China

• 成果类型: Article
• 署名作者: Chen, Yi-Chun; Hung, Mingyi; Wang, Yongxiang
• 署名单位: Hong Kong University of Science & Technology; University of Southern California
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2017.11.009
• 发表日期: 2018
• 关键词: nonfinancial disclosure; corporate; RESPONSIBILITY; pollution

摘要

We examine how mandatory disclosure of corporate social responsibility (CSR) impacts firm performance and social externalities. Our analysis exploits China's 2008 mandate requiring firms to disclose CSR activities, using a difference-in-differences design. Although the mandate does not require firms to spend on CSR, we find that mandatory CSR reporting firms experience a decrease in profitability subsequent to the mandate. In addition, the cities most impacted by the disclosure mandate experience a decrease in their industrial wastewater and SO2 emission levels. These findings suggest that mandatory CSR disclosure alters firm behavior and generates positive externalities at the expense of shareholders. (C) 2017 The Authors. Published by Elsevier B.V.